How to get a sponsorship / endorsement deal.

In my second blog post, I want to point out the difference between endorsement and sponsorship in the music business and discuss how to obtain these relationships with companies. An endorsement is "an official relationship between a manufacturer and a celebrity or influential artist."  The artist or celebrity gains publicity through the relationship, while the manufacturer hopes to increase overall sales “by utilizing the artist’s name/likeness through association, advertisement, promotion etc.” Rich Mangicaro (2006).  A sponsorship differs from an endorsement deal by paying money to the celebrity or artist in return for advertising the brand.  In an endorsement deal, the artist / celebrity can receive free products of the company additionally to the publicity benefit. This opens another possibility to relate the brand to the artist especially for fashion brands or manufacturer of musical equipment / instruments.

How to get an endorsement deal? First of all, the person searching for a deal should contact companies, which could be potentially interested in an endorsement. It is important to ask the right questions and to focus on the benefit that the artist can bring to the table instead of looking for the own advantage only. It is all about having a great idea that both parties could do together to bring more business for everyone. For local artists it is always advisable to start with a local business. Both partners need to be equal in their reach to make it a meaningful partnership. When approaching the brand, the artist should be well prepared. Creating a list of 3 to 5 reasons why they would benefit gives the artist a better understanding about how to structure a talk with a representative of the company.

Eventually, I want to mention that branding with human characteristics is becoming more and more important for companies today. This plays an important role in sponsorship especially between music entertainers and brands. It "is the idea that brand personality is a vehicle of consumer self-expression and can be instrumental in helping a consumer express different aspects of his or her self“ (Aaker 1997; Belk 1988; Escalas and Bettman 2005; Johar, Sengupta, and Aaker 2005).  "Humanizing a brand empowers it to play a more central role in the consumer’s life, potentially enabling the consumer to project an aspect of his or her self that might be desirable for relationships he or she seeks (Aaker 1997; Wallendorf and Arnould 1988) or possibly even give him or her a sense of comfort at having found a brand that “fits” with his or her self-concept." (Aaker 1999; Sirgy 1985; Swa- minathan, Page, and Gurhan-Canli 2007). Well-known examples for pop music artists and their sponsorships with brands are: Pitbull and Kodak, Bud Light, Voli Vodka, Pepsi. Jennifer Lopez and Fiat, L’Oreal, Tous Jewelry. Alicia Keys and HP, Glaceau Vitamin Water, GM.

Rich Mangicaro (2006).Getting the deal – The Music Industry’s Endorsement Game.

Retrieved December 11th, 2011, from: www.richmangicaro.com/Press_files/MangicaroPAS-1.pdf

John Deighton (2008). When Brand Personality Matters: The Moderating Role of Attachment Styles.

Retrieved December 11th, 2011, from:

www.csom.umn.edu/assets/120408.pdf

Simon Tam (2009). How to Get Endorsements or Sponsors for your band, tour, record, etc.

Retrieved December 11th, 2011, from:

http://www.musicthinktank.com/mtt-open/how-to-get-endorsements-or-sponsors-for-your-band-tour-recor.html

Digital music and intellectual property: The music industry engages governments worldwide to act.

My first blog post is about the music industry's lobby campaigns to enforce copyright protection of digital content. The music industry has spent "tens of millions of dollars… during the past decade" to engage governments worldwide in putting up a legal framework to protect intellectual property. Bruce Gain (2011). The United States Secretary of the Senate Office of Public Records (SOPR) and the Recording Industry Association of America (RIAA) have spent over "$90 million in lobbying efforts in the U.S. alone since 2000." Bruce Gain (2011).  When the revenue in CD sales began to decline in 2000, the organizations spent $4 million in lobbying. As the problem became bigger and bigger, spending went up to $17.5 million in 2009. (According to the center for Responsive Politics) Additionally, the recording industry has also spent more than $50 million in "legal fees for the industry's lawsuit campaign." Bruce Gain (2011).

David Levinthal, communications director for the Center for Responsive Politics says: "The music industry is spending more than other media groups". Bruce Gain (2011). The motion picture industry e.g. spent less than half in lobbying and was also suffering from Internet piracy since 2000. I think spending in lobbying will increase for media industries such as print media (books and newspapers) or the film industry. Due to the progress of the web  and its speed, we'll see new challenges in terms of intellectual property protection for these industries in the next years.

The music industry is also active in Europe to influence "digital file protection laws". Bruce Gain (2011).  In France and United Kingdom, Internet access can be suspended easily, if the consumer violates copyright law. The government in France has already sent out letters to alleged infringers with the intention to warn them about the consequences.

In the United States, legislation such as the Digital Millennium Copyright Act and the Copyright Term Extension Act were "drafted prior to 2000" and since that time the music industry still waits for an absolute removal of all copyright protected music on the Internet. Bruce Gain (2011).  Adrian Strain, director of communication at International Federation of the Phonographic Music (IFPI) says: “The music industry is responding to the digital environment in three basic ways: licensing repertoire in new ways that respond to what the consumer wants, public education to explain copyright laws and highlight legal services, and copyright enforcement to protect our rights.” Further he continues: “Our digital business is way ahead of other creative industries, with 30 percent of music sales coming from digital channels,” Strain said. “But none of this commercial activity and innovation can succeed unless there is proper protection of music rights and effective intellectual property enforcement.” Bruce Gain (2011).

Bruce Gain (2011). Special Report: Music Industry’s Lavish Lobby Campaign For Digital Rights.

 Retrieved December 11th, 2011, from: http://www.ip-watch.org/weblog/2011/01/06/special-report-music-industrys-lavish-lobby-campaign-for-digital-rights/